Business: INFLATION JITTERS WORRY THE BANKERS

WITH considerable unhappiness, moneymen still vividly recall the episode
in the late summer of 1966 that came to be known as "the credit
crunch." Restricting the nation's money supply in order to slow a rapid
price rise, the Federal Reserve Board acted so decisively that the
financial markets reacted with hysteria. Interest rates rose rapidly,
the Dow Jones average sank 25%, and many lenders were so short of funds
that it became extraordinarily tough for corporations to borrow at all.

The Federal Reserve has been fighting inflation in much the same way so
far in 1969, but until now the results have...